China recorded an improved economic activity during the month of March. This comes as a surprise to most authorities and analysts. The global demand intensified for Chinese merchandise leading to a prosperous trade surplus. As a consequence, the Chinese currency gained more influence. Moreover, authorities are hopeful that the next week’s quarterly report will reveal a steady economic flow for China.
The Chinese Trade Surplus for March Was of $23.93 billion
Last month, China had its exports increased by 16.4%. This way, the country managed to recover from a steady decline that came to describe the entire economy. By comparison, the month of February registered a 1.3% reduction in exports. At the same time, imports started to settle down. March scored a 20.3% of increased imports while February registered a rate of 38.1%.
As a consequence, on Thursday, the General Administration of Customs announced the establishment of a healthy trade surplus. The month of March obtained a $23.93 billion trade surplus. This is a surprising evolution from February’s trade deficit of $9.15 billion. On top of that, these sectors performed better than Wall Street expected. American analysts forecasted an export growth of 4.9% for the country, while imports were expected to have an 18.4% growth. As a consequence, the trade surplus would have been of $12 billion.
Economists Don’t See Signs of Financial Stability
However, China is not ready to take control of the economy. The financial status isn’t steady as the ones in Taiwan and South Korea that obtained even growth over the past few months. This is why economists question the ability to sustain the March numbers further over the upcoming period of time. They suggest that the country might go through many unbalanced days before being able to strike a positive equilibrium. An economist at Commerzbank AG, Zhou Hao, agrees with this view.
“The good part is, we’re seeing double-digit growth [in a trade]. The bad part is, it’s not sustainable. I don’t think China has a big pickup in demand.”
A higher demand for Chinese goods from U.S., Asia, and Europe fueled the boost in exports. This gave economists hope that the country has chances to recover from last year’s anemic trade expansion of only 1.3%. The financial status used to dwindle for China. This is because the recently elected President Donald Trump openly admitted that he intended to keep an eye on Beijing’s trade practices.
However, the two influential countries met at a Florida summit last week. They discussed a 100-day action plan regarding trade. Since then, Trump softened his statements directed to China. The President has even claimed that he would take a trade deal with the country.
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